A World Trade Free Zone is a Government designated Free Zone Area – Branded for Global Recognition, Business World Connectivity, and Management Support.

An area within which goods may be landed, handled, and re-exported freely. The purpose is to remove obstacles to trade and to permit quick turnaround of ships and planes. Only when the goods are moved to consumers within the country in which the zone is located do they become subject to tariffs and customs regulation. Free-trade zones are found around major seaports, international airports, and on major international railway or highway networks with easy access to foreign & world markets.

• Airport
• Seaport
• Rail Hub
• Intermodal Port
• Offshore Center

World Trade Free Zone (WTFZ) is a World Trade City Organization Global Brand

Designating a free trade zone (FTZ) or export processing zone (EPZ) is one or more special areas of a country where some normal trade barriers such as tariffs and quotas are eliminated and bureaucratic requirements are lowered in hopes of attracting new business and foreign investments. It is a region where a group of countries has agreed to reduce or eliminate trade barriers. [1]Free trade zones can be defined as labor intensive manufacturing centers that involve the import of raw materials or components and the export of factory products.

Most FTZs are located in developing countries. Bureaucracy is typically minimized by outsourcing it to the FTZ operator and corporations setting up in the zone may be given tax breaks as an additional incentive. Usually, these zones are set up in underdeveloped parts of the host country, the rationale being that the zones will attract employers and thus reduce poverty and unemployment and stimulate the area's economy. These zones are often used by multinational corporations to set up factories to produce goods (such as clothing or shoes).

Free trade zones in Latin America date back to the early decades of the 20th century. The first free trade regulations in this region were enacted in Argentina and Uruguay in the 1920s. However, the rapid development of free trade zones across the region dates from the late 1960s and the early 1970s.

Free Trade Zones are also known as Special Economic Zone is some countries. Special Economic Zones (SEZs) have been established in many countries as testing grounds for the implementation of liberal market economy principles. SEZ are viewed as instruments to enhance the acceptability and the credibility of the transformation policies, to attract domestic and foreign investment and also for the opening up of the economy. SEZs in India seek to promote the value addition component in exports, to generate employment as well as to mobilize foreign exchange.

Globally, many countries have initiated the Free Trade Agreements which have eventually led to a spurt in investments in the infrastructure of the Free Trade Zones (FTZs) and SEZs. A close examination of the evolution of SEZs in countries with similar economies like India eg; China, Iran, UAE and Jordan will help us to understand their success stories and further implement tse factors in order to curb the SEZ bottlenecks faced by India today. The Shenzhen SEZ in China is a perfect example of a SEZ success story.

In India, the government has been proactive in the development of the Special Economic Zones (SEZs). They have formulated policies, reviewed them occasionally and have ensured that ample facilities are provided to the developers of the SEZs as well as to the companies setting up units in the SEZs. These zones are of two types i.e. ‘Multiple Economic Zone’ and ‘Single Economic Zone’. A single SEZ can contain multiple 'specific' zones within its boundaries. One of the best examples is Sricity Multi product SEZ[1], part of Sricity, a satellite city being formed in between AP & TN in India.

In 1999, there were 43 million people working in about 3000 FTZs spanning 116 countries producing clothes, shoes, sneakers, electronics, and toys. The basic objectives of EPZs are to enhance foreign exchange earnings, develop export-oriented industries and to generate employment opportunities

U.S. Foreign-trade Zones - Definition

Foreign-Trade Zones are geographical areas, in or adjacent to U.S. Customs Ports of Entry, where commercial merchandise receives the same Customs treatment it would if it were outside the commerce of the United States. Merchandise of every description may be held in the Zone without being subject to Customs duties and other ad valorem taxes . This tariff and tax relief is designed to lower the costs of U.S.-based operations engaged in international trade and thereby create and retain the employment and capital investment opportunities that result from those operations. These special geographic areas – Foreign-Trade Zones – are established "in or adjacent to" U.S. Ports of Entry and are under the supervision of the U.S. Customs Service. Since 1986, U.S. Customs' oversight of FTZ operations has been conducted on an audit-inspection basis, whereby compliance is assured through audits and spot checks under a surety bond, rather than through on-site supervision by Customs personnel